Southwestern Public Service Company v. Ridge Renewables, LLC

Court of Appeals of Texas·Decided July 21, 2025·No. 07-23-00421-CV·Published

Opinion

In The

Court of Appeals

Seventh District of Texas at Amarillo

No. 07-23-00421-CV

SOUTHWESTERN PUBLIC SERVICE COMPANY, APPELLANT V.

RIDGE RENEWABLES, LLC, APPELLEE

On Appeal from the 64th District Court Hale County, Texas

Trial Court No. A43616-2012, Honorable Danah L. Zirpoli, Presiding

July 21, 2025

MEMORANDUM OPINION

Before QUINN, C.J., and PARKER and DOSS, JJ.

Southwestern Public Service Company appeals from a judgment awarding Ridge Renewables, LLC more than $1 million for bad-faith trespass. SPSC raises five issues on appeal. However, this case turns on whether Ridge met its summary judgment burden on two threshold questions: Did Ridge conclusively prove the original lease’s property description violates the statute of frauds? And, did Ridge conclusively prove SPSC’s wind lease rights expired in 2017? We answer both questions “No.” We therefore reverse the judgment and remand for further proceedings.

OVERVIEW

This dispute centers on competing claims to wind energy development rights on a 256-acre tract in Hale County, Texas. The jury’s substantial damages award to Ridge followed a hotly contested trial. But the jury never decided who held valid rights to harvest the wind. That answer—which formed the basis for the damages award—was determined as a matter of law when the trial court granted Ridge’s traditional motion for summary judgment and held that SPSC committed bad-faith trespass.

This case illustrates a fundamental principle of summary judgment practice: the moving party must conclusively establish every element of its claim as a matter of law. Here, because the evidence was not conclusive, we reverse and remand.

BACKGROUND

In December 1989, Glendale King and his wife Barbara purchased 256 acres in Hale County, Texas. King became the sole owner after Barbara’s death.

The Original Wind Lease and Property Conveyance

On August 24, 2010, King entered into a Wind and Easement Lease Agreement with Hale County Wind Farm, LLC. The lease’s property description, which Ridge challenges as inadequate under the statute of frauds, appears in Exhibit A:

Exhibit A

To

Hale County Wind Farm, LLC Memorandum of Lease Glendale King- 100%

All that real property located in Hale County, Texas containing 256 acres, more or less, described as follows:

Tract 1

S/PT of E ½ of section 58, Block R, Abstract AB 1695, Hale County, Texas being 256 acres.

The lease granted exclusive wind development rights with a Development Term ending on the earlier of: (1) HCWF beginning to sell electrical energy, or (2) seven years from the effective date (i.e., August 24, 2017). The lease provided for a potential two-year extension of the Development Term if construction commenced before the 2017 deadline, but stated that without timely construction, “this Lease shall expire and shall no longer be in full force and effect.”

Five months later, in January 2011, King conveyed some interests in the property to Kelly and Ronna Smalley. He reserved one-half of the mineral interests and retained a life estate in all “royalties derived from the production of Wind Energy pertaining to the Property” and the “right to lease the Property for Wind Energy production purposes.” Under the contract, all wind rights would revert to the Smalleys on King’s death. The deed entitled the Smalleys to receive payments for surface damages from wind development.

Subsequent Amendments and Transfers

The lease rights underwent multiple transfers between 2010 and 2020, but two developments are potentially crucial to this dispute. After Hale County Wind Farm assigned its rights to Hale Community Energy, King and HCE executed a July 2015 amendment that modified the 2010 lease terms. The 2015 amendment expressly

replaced the entirety of the Development Term’s original expiration provisions but inserted virtually identical language: (a) the date HCE begins selling electrical energy generated by wind turbines, or (b) “the seventh (7th) anniversary of the Effective Date,” unless construction timely commenced. The amendment defined “Effective Date” as July 30, 2015.1

Following HCE’s assignment to Hale Wind Energy, the Smalleys executed a “Second Amendment” with Hale Wind Energy in October 2017, with an effective date of August 23, 2017.2 The amendment, which King did not sign, purportedly extended the Development Term to August 24, 2020, and replaced the original property description with detailed metes and bounds.

SPSC acquired the lease rights through this chain of assignments and began construction in June 2018. SPSC completed two wind turbines in June 2019 and began producing electricity.

Ridge’s Claimed Interests and the Central Dispute

Ridge’s competing claim emerged in September 2020, after King executed a Wind Deed and Conveyance to Ridge Renewables, LLC for $30,000. King corrected this conveyance in March 2021. Ridge’s theory of ownership depends on King having retained valid wind development rights throughout the intervening decade—rights that

1 The amendment defining “Effective Date” as July 30, 2015, creates one of the contract interpretation disputes central to this case.

2 HCE assigned its interest to Hale Wind Energy in December 2015. August 23, 2017 is one day before the original 2010 lease was slated to expire.

SPSC claims King had leased away through the 2010 agreement and subsequent amendments.

King’s 2020 conveyance to Ridge birthed the central legal dispute in this case. If SPSC holds valid lease rights originating from the 2010 agreement and its subsequent amendments, then King granted the same wind development rights twice—first to SPSC’s predecessors and then to Ridge. If, however, the 2010 lease violated the statute of frauds or expired in 2017 as Ridge argues, then King retained the authority to convey these rights to Ridge, potentially making SPSC’s operations a trespass.

The Lawsuit

Ridge filed suit against SPSC in December 2020. Ridge’s petition alleged that the 2010 wind lease expired on August 24, 2017, making SPSC’s continued operation of wind turbines an unlawful trespass. Ridge sought both monetary relief—damages for trespass, unjust enrichment, and money had and received—and equitable remedies including injunctive relief, declaratory judgment, and trespass to try title.

In January 2022, Ridge filed a traditional motion for partial summary judgment seeking five declaratory rulings that would establish its superior rights and SPSC’s liability:

• Ridge holds exclusive rights to develop wind energy on the property, to lease those rights for development, and to receive all associated revenues;

• The 2010 wind lease either violated the statute of frauds or terminated by its own terms on August 24, 2017;

• The 2017 “Second Amendment” between Hale Wind Energy and the Smalleys carried no legal effect;

• SPSC’s wind operations constitute ongoing bad-faith trespass, entitling Ridge to damages; and

• The Second Amendment and a 2018 assignment (from Hale Wind Energy to the predecessor of SPSC) create unlawful clouds on Ridge’s title.

Ridge’s summary judgment motion advanced two alternative theories, both designed to establish that King retained wind development rights until his 2020 conveyance to Ridge. First, Ridge argued that the 2010 lease violated the statute of frauds because its property description was inadequate. Second, Ridge contended that even if the lease was initially valid, it expired on August 24, 2017, without valid extension. Ridge challenged both the 2015 amendment between King and Hale Community Energy (arguing it failed to extend the termination date) and the 2017 “Second Amendment” between the Smalleys and Hale Wind Energy (arguing the Smalleys lacked authority because they owned only surface rights). Under either theory, Ridge argued that King possessed wind development rights when he conveyed them to Ridge in 2020, making SPSC’s subsequent operations an actionable trespass.

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